An Introduction to Grid Services: Concepts, Technical Requirements, and Provision from Wind - Paul Denholm, Yinong Sun, and Trieu Mai - NREL

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An Introduction to Grid Services: Concepts, Technical Requirements, and Provision from Wind - Paul Denholm, Yinong Sun, and Trieu Mai - NREL
An Introduction to Grid Services:
Concepts, Technical Requirements,
and Provision from Wind

Paul Denholm, Yinong Sun, and Trieu Mai
An Introduction to Grid Services: Concepts, Technical Requirements, and Provision from Wind - Paul Denholm, Yinong Sun, and Trieu Mai - NREL
Introduction
Current Grid Services
Provision of Grid Services from Wind
Conclusions and Research Needs

                                       NREL | 2
Introduction

• Geographical Scope
• Regions Analyzed
Geographical Scope and Regions Analyzed

Market Regions      Estimated       Estimated
                    Electric        Population
                    Demand (TWh /   (million / % of
                    % of U.S.)      Total)
CAISO               228 / 6%        30 / 9%
PJM                 759 / 19%       65 / 20%
ERCOT               357 / 9%        23 / 7%
ISO-NE              121 / 3%        14.5 / 4%
NYISO               157 / 4%        19.5 / 6%
MISO                656 / 16%       48 / 15%
SPP                 246 / 6%        18 / 6%
Regulated Regions
Non-CAISO WECC      654 / 16%       52 / 16%
FRCC                231 / 6%        16 / 5%
SERC                673 / 16%       39.4 /12%

                                                      NREL | 4
Current Grid Services

•   Energy and Capacity
•   Operating Reserves
•   Other Essential Reliability Services
•   Relative Total System Costs
Current Grid Services

                                        Category of                                                 Timescale
• We separate energy and                  Service                     mS         S            Min             Hr               Day         Month   Year

  capacity services into one               Energy and                                                             Energy

  category and group the                    Capacity                                                                       Firm Capacity

  remaining services into a                                                Frequency Responsive Reserves

  general essential reliability
                                  Essential Reliability
                                                                                      Regulating Reserves
                                                          Operating
                                                          Reserves
  service (ERS) category.                                                                     Contingency Reserves

• ERSs are further                     Services                                              Ramping Reserves

  subdivided into operating                                Other
                                                                                        Voltage Support

  reserves and other ERSs.                                                               Black-Start Capability

                                                                      mS         S            Min             Hr               Day         Month   Year

                                                                                                                                                          NREL | 6
Historical Capacity Requirements
                        U.S. Power System Historical Peak and Annual Energy Demand

           Region                    Peak Demand (GW)
                                     2016                   2017

           CAISO                     46.2a                  50.1a
           PJM                       152.2c                 145.6c
           ERCOT                     71.1e                  69.5e
           ISO-NE                    25.6g                  24.0g
           NYISO                     32.1i                  29.7i
           MISO                      121.0k                 120.6k
           SPP                       50.6m                  51.2m

           Non-CAISO WECC            110.8o                 106.0o
           FRCC                      47.7q                  46.6q
           SERC                      129.0s                 132.2s
           Totalt                    786                    775

Each region is required to maintain sufficient capacity to meet the peak demand plus
additional capacity to address outages or unanticipated increases in demand.
                                                                                       NREL | 7
2020 Estimated Regional Capacity Requirements
                              U.S. Power System Peak Capacity Requirement Estimates
     Region           2020 Estimated      NERC Estimated            2020 Estimated Total   2020 Estimated
                      Peak Demand         Reference Margin          Peak Capacity          Reserve Margin
                      (GW)a               Level (%)b                Requirement (GW)       (%)
     Market Regions
     CAISO            53.6                16.14                     62.3                   20.6
     PJM              147.5               16.60                     172.0                  28.0
     ERCOT            73.7                13.75                     83.5                   18.0
     ISO-NE           26.3                16.90                     30.3                   23.8
     NYISO            32.1                15.00                     36.9                   25.0
     MISO             121.4               15.80                     140.6                  19.4
     SPP              52.5                12.00                     58.8                   28.9
     Regulated Regions
     Non-CAISO                                                                             23.7 (range of
                      110.0               range of 14.17 to 16.38   136.0
     WECC                                                                                  22.6 to 27.7)
     FRCC             45.8                15.00                     52.7                   22.5
     SERC             131.2               15.00                     150.9                  23.1

All U.S. regions are expected to have adequate generation capacity
to meet peak demand in the near future.
                                                                                                            NREL | 8
Energy Capacity Costs and Prices

• Most costs associated with power system generation are the fixed and
  variable costs associated with providing capacity and energy.

• Price caps and other factors typically require additional costs of capacity
  (i.e., “missing money”) to be captured via other mechanisms, including
  resource adequacy payments and/or capacity markets.

• Most U.S. regions have more capacity than is needed for resource
  adequacy/planning reserve targets, which tends to suppress capacity
  market prices.

                                                                                NREL | 9
Energy Capacity Costs and Prices
                                     U.S. Power System Energy Requirements

Region           Average Energy Price ($/MWh)                       Capacity Market Price ($/kW-month)a
                 2016                           2017                16/17                        17/18

Market Regions
CAISO            $33.1b                         $33.3b              N/A

PJM              $29.68c                        $30.85c             $1.81c                       $3.66c

ERCOT            $24.62d                        $28.25d             NA

ISO-NE           $31.74e                        $35.23e             $3.15e                       $7.03e
                 $31.32f                        $34.62f             Summer: $1.73g               Summer: $1.25g
NYISO                                                               Winter: $5.77g               Winter: $6.49g

MISO             $26.80h                        $29.46h             NA

SPP              $22.43i                        $23.43i             NA

                                                                                                                  NREL | 10
Operating Reserves

Defined as the capability above firm system demand required to provide for
regulation, load forecasting error, equipment forced and scheduled outages, and local
area protection.

Distinctions can be
characterized by three factors:
     • How much
     • How fast
     • How long

There are no uniform definitions
for various operating reserve products.

                                                                                   NREL | 11
Timescales of Operating Reserve Requirements

                                                  Timescale
                            mS             S     Option
                                                     Min 3             Hr              Day
                                 Inertial Response
   1. Frequency
      Responsive                         Primary Frequency Response                          Services
      Reserves                                                                               currently
                                        Fast Frequency Response                              not
                                                                                             procured
   2. Regulating                                                                             via markets
                                               Regulating Reserves
      Reserves
                                                                                             Proposed
                                                  Spinning Reserves                          or early
   3. Contingency                                                                            adoption
                                                               Non-spinning Reserves         market
      Reserves
                                                                                             services
                                                                      Replacement Reserves
                                                                                             Currently
   4. Ramping                                                  Ramping Reserves              procured
      Reserves                                                                               via markets
   5. Normal operation
      provided by “energy                                         Economic Dispatch
      and capacity”
                            mS             S             Min           Hr              Day

                                                                                                           NREL | 12
Operating Reserves

Resources with different technical characteristics are deployed at different times;
typically, they are deployed in order of response speed, from very fast to slow (and
with corresponding costs that range from more to less expensive).

Frequency-Responsive Reserves
    • Inertial Response
    • Primary Frequency Response
    • Fast Frequency Response

Regulating Reserves
    During normal operation, reserves are still required to meet random variations
    in net load

                                                                                       NREL | 13
Operating Reserves

Contingency Reserves
    •    Spinning Reserves
    •    Non-Spinning/Supplemental Reserves

Ramping Reserves
   • Least well defined of the reserve products
   • Not yet a common market product

Economic Dispatch (Normal System Operation)
All reserves are eventually replaced by the normal economic dispatch of conventional
generators as the system is restored to a pre-contingency state. This is not considered
an operating reserve or ERS and is provided by generators delivering energy and
capacity services.
                                                                                     NREL | 14
Frequency-Responsive Reserve Requirements

Frequency-responsive reserves traditionally consist of two services:
    • Inertial response
    • PFR
    • Neither inertial response nor PFR is a market product in any ISO/RTO market
Inertial Response
     • Not much detailed estimation of inertial response requirements in U.S.
     • Growing analysis of potential need to procure inertial response services
     • Only ERCOT has studied the amount of inertia potentially “required”
     • Requirement is measured in energy—how much energy can be injected
         rapidly into the system
           • Often measured in GW-seconds
     • No “headroom” component of inertial response
           • The amount of inertia that can be provided by a generator is independent
              of instantaneous power output                                        NREL |   15
Frequency-Responsive Reserve Requirements
                                             Primary Frequency Response Obligation

PFR                    Interconnection   Region               IFRO
                                                              (MW/0.1Hz)a
                                                                             MDF (Hz)b   Requirement (MW / %
                                                                                         of Peak Demand)
• NERC has             ERCOT             ERCOT                381            0.405       1,543 / 2.2%
                       Western           Western Total        858            0.28        2,402 / 1.5%
  established                            CAISO                196.5                      550 / 1.1%
  minimum                                Non-CAISO            661.5                      1,852 / 1.7%
                       Eastern           Eastern Total        1015           0.42        4,263 / 0.8%c
  recommended                            FRCC                 76.2                       320 / 0.7%
  standards for PFR                      SERC                 303.6                      1,275 / 1.0%
                                         NYISO                49.9                       210 / 0.7%
  for each of the                        PJM                  258.3                      1,085 / 0.7%
  three U.S. grids                       ISO-NE               38.3                       161 / 0.7%
                                         MISO                 210                        882 / 0.7%

• Each interconnection has a frequency response obligation
         • Further divided by BA in proportion to demand so that each region
            “shares” its obligation
                                                                                                        NREL | 16
Regulating Reserve Requirements and Costs

• Regulating reserves are a market product in each ISO/RTO
   • Most technically demanding requirements of the various reserve
      products in terms of response rate and the need for nearly continual
      ramping of the plant providing this service
   • Typically the most costly of the reserve services

                                                                             NREL | 17
Regulating Reserve Requirements and Costs
                                       Market Regions                    Average Regulation Requirement (% of Peak     2017 Average Price ($/MW-hr)
     Regulating Reserve Requirements                                     Demand / MW)
                                                                         Regulation Up: 0.64% / 320                    Regulation Up: $12.13
For the requirement in                 CAISO
                                                                         Regulation Down: 0.72% /   360a               Regulation Down: $7.69b
                                                                         Off-peak: 0.36% / 525
non-market regions, we                 PJM
                                                                         On-peak: 0.55% / 800c
                                                                                                                       $16.78d

multiply the percentage                ERCOT
                                                                         Regulation Up: 0.48% / 318                    Regulation Up: $8.76
                                                                         Regulation Down: 0.42% /   295e               Regulation Down: $7.48f
requirement of a large                 ISO-NE
                                       NYISO
                                                                         0.25% / 60g
                                                                         0.73% / 217i
                                                                                                                       $29.23h
                                                                                                                       $10.28j
utility in that region by the          MISO                              0.35% 425k
                                                                         Regulation Up: 0.92% / 470 Regulation Down:
                                                                                                                       $9.74l
                                                                                                                       Regulation Up: $8.20

total peak demand of the               SPP
                                                                         0.63% / 325m
                                                                         (% of Peak Demand / Estimated Region
                                                                                                                       Regulation Down: $6.60n

larger region in which it is           Regulated Regionso
                                       Non-CAISO WECC
                                                                         Requirement in MW)
                                                                                                                       Tariff ($/kW-month / $/MW-hr)

located                                (proxy utility: Arizona Public    1.17% / 1,240p                                $7.41/$10.29
                                       Service)
                                       FRCC
                                       (proxy utility: Florida Power &   1.35% / 629q                                  $4.8/$6.67
                                       Light)
                                       SERC
                                       (proxy utility: Southern          1.15% / 1,477r                                $4.2/$5.83
                                       Company)
                                       National                          (% of Total)s / Estimated Total Requirement   Average Price ($/MW-hr)t
                                                                         0.90% / 6,000 MW                              $11.24
                                                                                                                                                       NREL | 18
Contingency Reserve Requirements and Costs
                                                    Spinning Contingency Reserve Requirements

                         Market Regions              Spinning Requirement (% of Peak   2017 Average Price ($/MW-hr)
The actual quantity                                  Demand / MW)
                         CAISO                       1.60% / 800 MWa                   $10.13b
procured is typically    PJM                         1.03% / 1,504.8 MWc               $3.73d
greater than             ERCOT
                         ISO-NE
                                                     3.76% / 2,616.8 MWe
                                                     3.75% / 900 MWg
                                                                                       $9.77f
                                                                                       $2.96h
regulation               NYISO
                         MISO
                                                     2.20% / 655 MWi
                                                     0.61% / 740 MWk
                                                                                       $5.00j
                                                                                       $2.94l
requirements, but        SPP                         1.14% / 585 MWm                   $5.25n
                                                     (% of Peak Demand) / Estimated
the price is typically   Regulated Regions
                                                     Region Requirement
                                                                                       Tariff ($/kW-month / $/MW-hr)
                         Non-CAISO WECC
lower due to the                                     1.50% / 1590                      $6.26 / $8.69
                         (Arizona Public Service)
infrequent ramping       FRCC
                                                     0.43% / 200                       $5.16 / $7.17
requirements.            (Florida Power & Light)
                         SERC
                                                     2.00% / 2,568                     $4.2 / $5.83
                         (Southern Company)
                         National                    (% of Total)o / Estimated Total   Average Price ($/MW-hr)p
                                                     Requirement
                                                     1.58% / 12,160                    $6.15

                                                                                                                       NREL | 19
Contingency Reserve Requirements and Costs
                                                   Non-Spinning Contingency Reserve Requirements
                               Market Regions             Non-Spinning Requirement (% of Peak Demand /   2017 Average Price ($/MW-hr)
The procurement                CAISO
                                                          MW)
                                                          1.60% / 800 MWa                                $3.09b

requirement (total MW)         PJM
                               ERCOT
                                                          1.03% / 1,053.2 MWc
                                                          2.21% / 1,534.5 MWe
                                                                                                         $2.11d
                                                                                                         $3.18f
                                                          10-minute total reserve: 5.98% / 1435 MW       10-minute non-spinning reserve: $0.89
for non-spinning reserves      ISO-NE                     30-minute operating reserve: 3.33% / 800 MWg   30-minute operating reserve: $0.82h

is typically similar to that
of spinning reserves
                                                          10-minute total reserve: 4.41% / 1310 MW       10-minute non-spinning: $4.18
                               NYISO                      30-minute reserve: 8.82% / 2620 MWi            30-minute component: $4.01j
(because non-spinning          MISO                       0.92% / 1,110 MWk                              $1.14l

typically replace spinning).   SPP                        1.43% / 730 MWm
Ramping Reserve Requirements
                                    Ramping (Flexibility) Requirements by Region

Region         Requirement
               •    Maximum flexible ramp up and down requirements are defined as the 2.5% and the 97.5% percentile of net load change
               •    Uncertainty threshold:
                      o      For the system in the 15-minute market: -1,200 MW in the downward direction and 1,800 MW in the upward
CAISO                        direction;
                      o      For the system in the 5-minute market: -300 MW and 500 MW in the downward and upward directiona

               •    Depends on the sum of the forecasted change in net load and an additional amount of ramp up/down (575 MW for now)
               •    Highest hourly average real-time ramp-up requirement: 1,554 MW
MISO
               •    Highest hourly average real-time ramp-down requirement: 1,614 MWb

These reserves are an emerging product with limited market data for analysis.

                                                                                                                                 NREL | 21
Total Reserve Requirements

                       8,000                        14%

                       7,000

                                                          Fraction of Annual Peak Demand
                                                    12%                                    Ramping
Capacity Needed (MW)

                       6,000                                                               Nonspinning
                                                    10%
                       5,000
                                                    8%                                     Spinning
                       4,000
                                                    6%                                     Regulation
                       3,000
                                                                                           PFR
                                                    4%
                       2,000
                                                                                           Pct Peak Energy
                       1,000                        2%                                     Demand

                          0                         0%

                                                                                                             NREL | 22
Total Energy and Reserve Requirements

                       160

                       140
Capacity Needed (GW)

                       120

                       100                                    Ramping

                        80                                    Nonspinning
                                                              Spinning
                        60
                                                              Regulation
                        40
                                                              PFR
                        20
                                                              Energy
                         0

                                                                            NREL | 23
Other Essential Reliability Services

• There are a number of other ERSs; two of the most important are:
   • Black-start
   • Voltage support

• A significant difference from other services is that these are typically
  acquired on a cost-of-service basis

                                                                             NREL | 24
Black-Start

• Represents capacity that can be started without external power and then
  subsequently provide power and energy to start other power plants

• Typically relatively small power plants including certain hydroelectric
  facilities, diesel generators, or small gas turbines

• Historically been procured on a cost-of-service basis, even in wholesale
  market regions
   • Each region has specific technical requirements for the type and
      quantity procured

                                                                             NREL | 25
Voltage Support

• Ensuring electric system reliability requires maintaining both frequency and voltage
   • Frequency is constant throughout the grid.
   • Voltage varies depending on location.
• Devices that provide voltage control maintain appropriate voltage on the grid
  during both normal operating conditions and fault conditions.
• Voltage is controlled by different methods at different points of the grid.
   • Key element of this is the ability to inject or absorb reactive power.
• Reactive power cannot be transmitted over long distances.
   • Voltage control is performed at each of the three major parts of the grid,
       including at the point of generation, at various points in the transmission
       system, and in the distribution network. For additional discussion of reactive
       power.
• Reactive power is provided by “active” devices such as synchronous generators or
  power electronics devices or by “passive” devices such as capacitor banks.
                                                                                   NREL | 26
Relative Total System Costs

   • Vast majority of generation-related costs are associated with the provision of
     energy and capacity

                                                                                  2017 PJM Market Settlements Summaryb
            2017 ISO-NE Market Settlements Summarya
                                                                                                         Billing
                                        Billing                                                          ($ Million)     Percentage
                                        ($ Million)   Percentage   Energy market                         21,087          52.49%
Energy markets total                    4,522         49.50%       Capacity                              9,103           22.66%
Forward capacity market payments        2,244         24.56%       Transmissionc                         8,739           21.75%
Regional network service                2,163         23.68%       Scheduling                            366             0.91%
Reserve markets total                   70            0.77%        Reactive services                     309             0.77%
Net commitment-period compensation      52            0.57%        Regulation market                     104             0.26%
Regulation market                       32            0.35%        Black-start                           72              0.18%
Financial transmission rights (FTRs)    20            0.22%        Operating reserves                    68              0.17%
Black-start                             12            0.13%        Synchronized reserve market           49              0.12%
Volt-ampere-reactive capacity cost      20            0.22%        Day-ahead scheduling reserve market   34              0.08%
Demand-response payments                1             0.01%        Other                                 241             0.60%
Total                                   $9,136        100.00%      Total                                 $40,172         100.00%

                                                                                                                            NREL | 27
Provision of Grid
Services from Wind

• Energy and Capacity
• Operating Reserves
• Other Essential Reliability Services
Provision of Services from Wind
      More than 1,000 MW of wind generation capacity has been deployed in each of
               the regions analyzed, with the exception of SERC and FRCC.
                                                           2017 Wind Energy Provision
The value of the energy
and capacity provided by    Region              Installed Capacity (MW)   Annual Energy (GWh)   Fraction of Demand
                                                                                                (%)
wind is impacted by the     Market Regions

variable nature of the      CAISO
                            PJM
                                                6,296
                                                8,141
                                                                          12,823
                                                                          20,714
                                                                                                6.0
                                                                                                2.7
resource.                   ERCOT
                            ISO-NE
                                                21,704
                                                1,401
                                                                          62,193
                                                                          3,444
                                                                                                17.4
                                                                                                2.6
Wind tends to be            NYISO               1,826                     4136                  2.7
                            MISO                17,000                    50,535                7.7
somewhat negatively         SPP                 17,591                    58,874                23.2

correlated with demand      Regulated Regions
                            Non-CAISO WECC      16,766                    43,967                6.7
patterns over the diurnal   FRCC                0                         0                     0
                            SERC                237                       514                   0
and seasonal cycle.         Total               87,331                    225,585               5.5

                                                                                                               NREL | 29
Energy and Capacity

• Most ISO/RTOs and large utilities with substantial wind deployments have
  performed capacity credit analysis of wind.

• The following table demonstrates that for nearly all regions of the United
  States, a capacity credit of significantly less than 50% is applied to wind,
  with capacity credits well under 20% applied in many cases.

                                                                                 NREL | 30
Energy and Capacity
                                                       Capacity Credit by Market Region

Region              Capacity Credit
Market Regions
CAISOa              Summer values of about 27%.
                    Initially applies 13% of nameplate; after three years of operation, historic performance over seasonal peak periods determine unit’s capacity
PJMb
                    credit.
                    Based on average historical availability during the highest 20 seasonal peak load hours for each season (2009–2016). Values recalculated after
ERCOTb              each season with new historical data. Current contribution: 58% coastal and 14% noncoastal (summer); 35% coastal and 20% noncoastal
                    (winter).
ISO-NEb             Summer values average to approximately 13.2% of nameplate rating.
                    Onshore: summer 10%; winter 30%
NYISOc
                    Offshore: 38%
MISOd
2016                15.6%
2017                15.6%
2018                15.2%
                    5% assumed for first three years if the load-serving entity (LSE) chooses not to perform the net capability calculation during the first 3 years of
SPP                 operation, after which the net capability calculations are applied by selecting the appropriate monthly MW values corresponding to the LSE’s
                    peak load month for each season.
Regulated Regions
                    Varies. For example, Xcel Colorado uses 16%.e Portland General Electric uses 5%–15% for wind resources located in the Pacific Northwest.f
Non-CAISO WECC
FRCC                Not applicable.
SERC                Varies.

                                                                                                                                                                  NREL | 31
Operating Reserves
• Wind was once considered a non-dispatchable “must-take” resource without the
  ability to provide reserves
• Now recognized that the output of a wind turbine can be accurately controlled (up
  to the amount allowed by instantaneous wind speed)
• Wind has important differences that provide both relative advantages and
  disadvantages compared to more traditional resources.
             Key Parameters for Provision of Operating Reserves for Thermal/Hydro Resources and Wind
           Parameter         Thermal/Hydro                                Wind
           Dispatch Range    Min to max, min is typically 25% to 50% of   0 to max, where maximum output is
           (“how much”)      maxa                                         variable (limited by current wind speed)
           Ramp Rate (“how   Start time ranges from several minutes to    Ramp rate greater than 5%/secondc
           fast”)            hours. Ramp rate when online ranges
                             from about 1%/min for combined-
                             cycle/coal to 5%/min for combustion
                             turbine
           Availability of   Typically unconstrained with fuel            Contingent on wind resource, which has
           Output (“how      availability                                 increased unpredictability with duration
           long”)

                                                                                                                     NREL | 32
Operating Reserves

• Wind performance is different from that of conventional generators
   • Technical ability of wind to provide reserves varies by service

• Key element of providing reserves from wind is the need for pre-curtailment, which
  incurs the opportunity cost of reduced energy sales
    • Pre-curtailment requires reducing the output of the wind turbine, performed
       by changing the blade pitch angle and reducing the amount of energy
       extracted from the wind
    • Pre-curtailment requirement reduces the revenue from electricity sales for a
       wind generator providing this service, at least under current market conditions

• Wind generators will always prefer to provide energy instead of reserves as long as
  the price of energy is greater than the price of reserves.
                                                                                   NREL | 33
Operating Reserves

• As variable generation penetration increases, there may be times when the price of
  energy falls to zero and wind is curtailed.

• Under certain conditions, it may be economically advantageous—for the wind plant
  and the system—for curtailed wind to provide reserves and wind can potentially
  improve overall system dispatch by allowing decommitment (turning off) of more
  costly (on an operating basis) generators that are online primarily to provide
  reserves.

• Most wind curtailment has been due to transmission constraints, where wind
  would not be able to provide reserves, as the location where reserves are needed
  does not correspond to the location of the wind.

                                                                                 NREL | 34
Operating Reserves

While the need for pre-curtailment is an economic factor, an important technical
factor is ensuring that headroom will remain available for the response time needed.

                Impact of variable output on the ability of wind to provide upward reserve services

                                                                                                      NREL | 35
Operating Reserves

• Wind can increase output very rapidly, but the duration of response becomes
  problematic.
• The “how long” component of reserve service from wind is limited by both the
  likelihood of wind remaining at or higher than current output and the predictability
  of this output.
• While the forecast accuracy of wind is increasing, the ultimate limit to wind
  headroom is the relatively low capacity credit.
• A system operator may not be able to plan on the availability of wind to provide
  upward reserves, and insufficient wind during certain periods may require other
  sources of capacity to be available to provide reserves.
• Wind will act to reduce the variable costs associated with providing reserves, but
  have somewhat limited availability to reduce the fixed costs.

                                                                                   NREL | 36
Frequency-Responsive Reserves

• Wind generators have demonstrated the ability to provide both an “inertia-like”
  product and PFR, and FERC requires new wind turbines to provide PFR.

• Modern wind turbines do not use synchronous generators
   • Do not provide inertia in the traditional sense (defined as automatically
     resisting changes in frequency)
   • Have kinetic energy in the rotating mass of the blades, shaft, and generator
     that can be extracted to rapidly inject real power into the grid

• Provision of inertial service in this fashion requires active sensing of grid frequency.
    • When a decrease in frequency is sensed, the generator can be programmed to
       increase output to beyond what can be supported by “steady state” wind
       speeds.
                                                                                       NREL | 37
Frequency-Responsive Reserves

• The provision of inertia from wind turbines in this manner is unique
  compared to other reserve service provisions in that it does not require
  pre-curtailment of wind.
• Sometimes been referred to as “synthetic” inertia
• Combination of extracting energy from rotating wind turbines and using
  pre-curtailed wind energy to provide a rapid increase in output can mimic
  traditional frequency-responsive reserves
    • These services do not precisely match those from conventional
       generators.
    • Terminology is still in flux.

                                                                          NREL | 38
Frequency-Responsive Reserves

• “Fast frequency response” (FFR) has emerged as a preferred term that
  captures the ability of non-synchronous generators to inject real power
  into a grid upon sensing a change in frequency.
• Difference between FFR and PFR is less clear; generally PFR would reflect a
  somewhat slower response (but still measured in a few seconds or less)
• Still important to distinguish frequency response that is derived from
  extraction of turbine kinetic energy as opposed to from pre-curtailment,
  given the potentially economic implication of these different sources
                                 Terms Applied to Frequency-Responsive Services

          Conventional Synchronous Generator      Wind (Previous Terms)        Wind (Current Terms)
          Inertia                                 Synthetic inertia (derived   FFR (derived from kinetic
                                                  from kinetic energy)         energy)
          PFR                                     PFR from pre-curtailment     PFR or FFR (from pre-
                                                                               curtailment)
                                                                                                           NREL | 39
Frequency-Responsive Reserves

• Ability of wind to provide frequency response from both extraction of kinetic
  energy and increased output from pre-curtailed wind is well established
   • Major wind turbine manufacturers offer this service.
   • ERCOT requires all new turbines to have FFR capabilities.

• Manner in which wind can provide frequency-responsive services is also
  evolving
   • Can be “programmed” to provide a response similar to that of legacy
      synchronous generators
   • It is possible wind response can be optimized to grid requirements and
      vary based on both the current frequency and the rate of change of
      frequency (ROCOF).
                                                                           NREL | 40
Regulating Reserves

• Require synchronized generator to have the ability to increase or decrease
  output in response to a signal from the system operator

• Wind requires pre-curtailment to provide upward reserves
   • There has been limited use of wind to provide regulating reserves,
     with one example being Xcel Energy in Colorado.

• Regulating reserves are typically the highest-cost reserve product

• Rules for wind providing regulating reserves are unclear, inconsistent, and
  evolving in U.S. ISO/RTO markets

                                                                            NREL | 41
Ramping Reserves

• Similar to regulating reserves in that they require a generator to have the
  ability to increase or decrease output in response to a dispatch signal.
    • Primary difference is that flexibility reserves are generally slower (i.e.,
       lower ramp rate) and longer (i.e., requiring the generator to hold
       output for a longer period)
    • Makes this reserve product easier to meet for a conventional
       generator, and a lower-cost service from the system perspective

• A flexibility reserve product is likely to have lower costs than regulation.

                                                                                 NREL | 42
Contingency Reserves

Spinning Contingency Reserves
• Must have the ability to:
    1. Be synchronized to the grid and begin responding quickly (within a few
        seconds)
    2. Reach setpoint within about 10 minutes
    3. Hold output for at least 30 minutes (60 in a few locations)

• For pre-curtailed wind, criteria 1 and 2 are well within the technical requirements.
    • Third requirement could be more challenging given the greater variability and
       lower predictability of wind over longer timescales

• Contingency reserve prices are typically lower than those of regulation.
   • Little incentive for wind to provide this service, and market rules have limited
      explicit discussion of wind providing it
                                                                                    NREL | 43
Contingency Reserves

Non-spinning Contingency Reserves
• Upward-only reserve product that can be provided by online generators, or units
  that can start quickly

• Non-spinning reserves typically the lowest-cost operating reserve service

• Long-duration requirement (multiple hours) may limit the ability of wind to provide
  this service given the constraints of predictability and limited capacity credit

                                                                                    NREL | 44
Other Essential Reliability Services

Voltage Support
• Power electronics built into wind turbines are well suited to providing voltage
   control and reactive power.

• Variable generation power plants larger than 20 MW must provide reactive power
   • Aggregated capacity of the plant, which typically consists of multiple turbines
       or solar arrays

• Modern wind turbines can also provide reactive power even when not generating.

• Voltage support is a localized service, and grids often need it in areas where it is not
  possible to place wind turbines.

                                                                                       NREL | 45
Other Essential Reliability Services

Black-Start Capacity
• Must be able to start on its own without grid power and create a reference grid
   frequency
     • Provides other generators with sufficient power to energize station power
        requirements, start, and synchronize
• Wind turbines typically start using external grid power.
• Parasitic/operating loads are relatively small and could be provided using a battery
   or small auxiliary generator.
• Some have “grid-forming” capacity, or the capability to create an AC reference.
• Primary challenge of black-start capability from wind turbines is their low capacity
   credit and variability.
• There has been very little analysis of the ability of wind to provide black-start
   capability in the United States.
                                                                                    NREL | 46
Summary – Grid Services from Wind

• Both existing practices and ongoing research indicate that wind can
  technically provide nearly all services procured and utilized in the grid, but
  this ability is constrained by the geographical and temporal availability of
  the wind resource.

• Wind does not provide all services in U.S. regions currently due to market
  rules, the aforementioned constraints, and economic considerations.

• Until there is significant curtailment of wind energy, wind will likely
  continue to act primarily as an energy resource.

                                                                              NREL | 47
Summary – Grid Services from Wind
Service              Market Procured       Wind Can            Wind Currently      Requires Pre-
                     and Compensated       Technically         Provides in U.S.?   Curtailment for Wind to
                     Service?              Provide?a                               Provide?
Capacity             Y                     Y                   Y                   N
Energy               Y                     Y                   Y                   N

Inertial Response    N                     Y                   N/A                 Nob
                     Required but not
Primary Frequency    compensated –
Response             proposals only        Y                   Limited             Y
Fast Frequency
Response             N – proposals only    Y                   Limited             Y
Regulating
Reserves             Y                     Y                   Limited             Y
Contingency –
Spinning             Y                     Y                   Limited             Y
Contingency – Non-
spinning             Y                     Y                   No                  Y
Contingency –
Replacement          Y                     Maybe               No                  Y

Ramping Reserves     Y (some locations)    Y                   Limited             Y
                                           Yc – location
Voltage Support      Y – cost of Service   dependent           Limited             N
                                           Unclear, location
Black-Start          Y – cost of Service   dependent           No                  N                         NREL | 48
Conclusions and
Research Needs
Conclusions
•   There is potential for growth in and changes to essential reliability service requirements—and
    potential for wind energy to provide them.

•   Wind has already demonstrated the capability to provide multiple reserve services, with
    response rates that meet or exceed those from conventional synchronous generators.

•   Major limitation in providing operating reserves is the need to pre-curtail and provide upward
    headroom
      • Reduces the amount of energy that can be sold
      • Little economic incentive to provide these services in today’s grid

•   As curtailment increases due to greater wind deployment, or as reserve requirements
    increase, it may become more economic for wind to provide reserves.

•   Wind is far more suited for shorter-term (but more valuable) services that can take advantage
    of wind’s rapid response rate, including FFR, PFR, and regulating reserves.
                                                                                               NREL | 50
Research Needs

• Further analysis is needed to determine both the types and quantities of reserves
  needed to address greater variability and uncertainty of net load under future grid
  conditions.

• Important consideration is the evolution of energy markets under these future
  conditions.

• A variety of technologies including wind can provide services needed by the grid,
  but market products may need to be altered to align the technical needs with
  appropriate economic incentives.

                                                                                      NREL | 51
Read the full report:
                                                                            https://www.nrel.gov/docs/fy19osti/72578.pdf

                                                                            www.nrel.gov
                                                                            NREL/PR-6A20-73590

This work was authored by the National Renewable Energy Laboratory, operated by Alliance for Sustainable Energy, LLC,
for the U.S. Department of Energy (DOE) under Contract No. DE-AC36-08GO28308. Funding provided by the U.S.
Department of Energy Office of Energy Efficiency and Renewable Energy Wind Technologies Office. The views expressed
in the article do not necessarily represent the views of the DOE or the U.S. Government. The U.S. Government retains
and the publisher, by accepting the article for publication, acknowledges that the U.S. Government retains a
nonexclusive, paid-up, irrevocable, worldwide license to publish or reproduce the published form of this work, or allow
others to do so, for U.S. Government purposes.
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